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BIMI International Medical (BIMI)

Filed: 24 May 21, 8:35am

Exhibit 99.1

 

BOQI International Medical Announces First Quarter 2021 Financial Results

 

NEW YORK, May 24, 2021 (GLOBE NEWSWIRE) --  BOQI International Medical Inc. (NASDAQ: BIMI) (“BIMI” or the “Company”), a leading healthcare products and services provider in China, today announced its financial results for the first quarter ended March 31, 2021.

 

First Quarter 2021 Financial Highlights

 

 Revenues grew by $1.75 million, or by 423%, to $2.17 million for the first quarter of 2021 from $0.41 million in the same period of 2020.
   
 Gross profit increased by $0.51 million, or by 620%, to $0.59 million for the first quarter 2021 from $0.08 million in the same period of 2020.
   
 Gross margin increased to 27.32% for the first quarter 2021 from 19.84% in the same period of 2020.

 

  For three months ended March 31 
Differences due to rounding 2021  2020  % change 
Revenues $2.17 million  $0.41 million   423%
Gross profit $0.59 million  $0.08 million   620%
Gross margin  27.32%  19.85%  7.47%
Net loss from continuing operations $3,290,627  $1,347,234   144%
Net loss attributable to BOQI International Medical Inc. $3,333,242  $2,194,875   52%

 

Mr. Tiewei Song, Chief Executive Officer and President of the Company, commented: “We are pleased to see both of our revenues and gross margins continued to be boosted by our expanded business operations and enhanced efficiency during the first quarter of 2021. These improvements support our strategy to build a comprehensive healthcare ecosystem in China with a focus on a high-end gynecology-focused hospital chain through both organic growth and bolt-on acquisition opportunities. We intend to maintain this momentum in order to achieve sustainable profitability and create value for our shareholders.”

 

Revenues

 

Revenues for the three months ended March 31, 2021 and 2020 were $2.17 million and $0.41 million, respectively. Compared with the same period in 2020, revenue in the 2021 period increased by $1.75 million, or 423%, mainly due to the increase in sales of wholesale pharmaceuticals of $1.10 million and medical services of $0.70 million.

 

Revenues from the retail pharmacy segment for the three months ended March 31, 2021 was $0.12 million, generated from 5 retail pharmacy stores in Chongqing.

 

Revenues from wholesale medical devices segment for the three months ended March 31, 2021 and 2020 were $0.06 million and $0.25 million, respectively. The decrease is mainly due to low demand for medical devices during the first quarter, which is typical because of the long break during the Chinese New Year.

 

 

 

 

Cost of revenues

 

Cost of revenues for the three months ended March 31, 2021 and 2020 was $1.58 million and $0.33 million, respectively. The Company recorded an obsolescence loss of $0.03 million with respect to inventories, which was included in the cost of revenues for the three months ended March 31, 2021 compared with an obsolescence loss of $0.30 million for the same period in 2020. The decrease of inventory provision is due to the obsolescence of inventory held for sale by the Boqi pharmacies in Dalian, whose stores suffered from the lockdown policy in effect due to the COVID-19 pandemic.

 

Gross profit

 

Gross profit for the three months ended March 31, 2021 and 2020 was $0.59 million and $0.08 million, respectively. For the three months ended March 31, 2021 and 2020, we had a gross margin of 27.32% and 19.85%, respectively. For the three months ended March 31, 2021 and 2020, the gross profit margin of our: (i) retail pharmacy segment were 17.17% in 2021; (ii) wholesale medical devices segment were 52.73% and 19.73%, respectively; (iii) wholesale pharmaceuticals segments were 36.21% and 19.99%, respectively; and (iv) medical services segment was 9.32% for the three months ended March 31, 2021.

 

Operating expenses

 

Operating expenses from continuing operations were $3.83 million for the three months ended March 31, 2021 as compared to $1.41 million for the same period in 2020, an increase of $2.43 million or 173%. The increase is primarily attributable to the inclusion of the operating expenses of the medical services segment of appropriately $0.32 million and the Chongqing Guanzan Technology Co., Ltd. (“Guanzan Group”) of approximately $0.51 million, which we acquired in March 2020, and the amortization of the discount relating to the convertible notes issued in 2021 of $1.61 million, and general operating expenses which primarily include legal expenses of $0.28 million and audit fee of $0.15 million and other compliance expense.

 

Other expenses

 

For the three months ended March 31, 2021 and 2020, we reported other expenses of $0.03 million and $0.02 million, respectively. Other expenses mainly consisted of interest expense relating to the bank loans of the Guanzan Group, Chongqing Guoyitang Hospital Co., Ltd. (“Guoyitang”) and Chaohu Zhongshan Minimally Invasive Hospital (“Zhongshan”).

 

The Company completed the acquisitions of Guoyitang and Zhongshan in February, 2021.

 

Net loss from continuing operation

 

Net loss from continuing operations was $3.29 million and $1.35 million for the three months ended March 31, 2021 and 2020, respectively. The increase was primarily due to the increase in operating expenses and the other expenses described above.

 

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Net loss attributable to BOQI International Medical Inc.

 

As a result of the foregoing our net loss attributable to BOQI International Medical Inc. increased by $1.14 million to $3.33 million for the three months ended March 31, 2021 from $2.19 million for the three months ended March 31, 2020.

 

Cash and working capital

 

As of March 31, 2021, we had cash of $2.84 million and negative working capital of $0.18 million as compared to cash of $0.14 million and working capital of $9.62 million as of December 31, 2020.

 

About BOQI International Medical Inc.

 

BOQI International Medical Inc. was founded in 2006. In February 2019, the Board of Directors of the Company determined to focus on the healthcare industry. The Company is now exclusively a healthcare products and provider, offering a broad range of healthcare products and related services and operates two private hospitals. For more information, please visit www.usbimi.com.

 

Safe Harbor Statement

 

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, the Company’s ability to achieve profitable operations, its ability to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, the effects of the spread of the Coronavirus (COVID-19), the demand for the Company’s products and services in the People’s Republic of China, general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission.

 

Investor Relations Contact:

 

Janice Wang 
EverGreen Consulting Inc. 
Email: IR@changqingconsulting.com 
Phone: +1 571-464-9470 (from U.S.) 
+86 13811768559 (from China)

 

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BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 

  March 31  December 31 
  2021  2020 
ASSETS      
CURRENT ASSETS      
Cash $2,830,834  $135,309 
Restricted cash  4,590   - 
Accounts receivable, net  7,169,691   6,686,552 
Advances to suppliers  3,093,935   2,693,325 
Amount due from related parties  41,012   - 
Inventories, net  3,569,135   735,351 
Prepayments and other receivables  4,941,351   14,880,526 
Operating lease-right of use assets  46,521   53,425 
Total current assets  21,697,069   25,184,488 
         
NON-CURRENT ASSETS        
Deferred tax assets  181,451   193,211 
Property, plant and equipment, net  1,769,927   910,208 
Operating lease-right of use assets  1,572,515   - 
Intangible assets-net  13,445   - 
Goodwill  24,512,118   6,914,232 
Total non-current assets  28,049,456   8,017,651 
         
TOTAL ASSETS $49,746,525  $33,202,139 
         
LIABILITIES AND EQUITY        
CURRENT LIABILITIES        
Short-term loans $1,054,510  $904,228 
Long-term loans due within one year  496,974   34,201 
Convertible promissory notes, net  5,132,530   3,328,447 
Accounts payable, trade  10,183,541   5,852,050 
Advances from customers  529,279   194,086 
Amount due to related parties  791,581   226,514 
Taxes payable  60,322   773,649 
Other payables and accrued liabilities  4,849,557   4,228,976 
Lease liability-current  354,705   23,063 
Total current liabilities  23,452,999   15,565,214 
         
Lease liability-non current  1,396,148   22,457 
Long-term loans - non-current  425,592   720,997 
Total non-current liabilities  1,821,740   743,454 
         
TOTAL LIABILITIES  25,274,739   16,308,668 
         
EQUITY        
Common stock, $0.001 par value; 50,000,000 shares authorized; 20,131,488 and 13,254,587 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively  20,131   13,254 
Additional paid-in capital  37,362,809   26,344,920 
Statutory reserves  2,263,857   2,263,857 
Accumulated deficit  (16,248,215)  (12,914,973)
Accumulated other comprehensive income  853,795   1,003,392 
Total BOQI International Medical Inc.’s equity  24,252,377   16,710,450 
         
NON-CONTROLLING INTERESTS  219,409   183,021 
         
Total equity  24,471,786   16,893,471 
         
Total liabilities and equity $49,746,525  $33,202,139 

 

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BOQI INTERNATIONAL MEDICAL, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE GAIN/LOSS
(UNAUDITED)

 

  For three months ended
March 31
 
  2021  2020 
REVENUES  2,168,004   414,584 
         
COST OF REVENUES  1,575,743   332,299 
         
GROSS PROFIT(LOSS)  592,261   82,285 
         
OPERATING EXPENSES:        
Sales and marketing  452,636   41,070 
General and administrative  3,380,014   1,364,952 
Total operating expenses  3,832,650   1,406,022 
         
LOSS FROM OPERATIONS  (3,240,389)  (1,323,737)
         
OTHER INCOME (EXPENSE)        
Interest expense  44,355   21,684 
Other (income)/ expense  (12,865)  545 
Total other income (expense), net  (31,490)  (22,229)
         
LOSS BEFORE INCOME TAXES  (3,271,879)  (1,345,966)
         
PROVISION FOR INCOME TAXES  18,748   1,268 
         
NET LOSS FROM CONTINUING OPERATIONS  (3,290,627)  (1,347,234)
         
DISCONTINUED OPERATIONS        
Income/(loss) from operations of discontinued operations  -   (854,957)
         
NET LOSS  (3,290,627)  (2,202,191)
Less: net income (loss) attributable to non-controlling interest  42,615   (7,316)
NET LOSS ATTRIBUTABLE TO BOQI INTERATIONAL MEDICAL INC. $(3,333,242) $(2,194,875)
         
OTHER COMPREHENSIVE LOSS        
Foreign currency translation adjustment  (149,597)  (120,201)
         
TOTAL COMPREHENSIVE LOSS  (3,440,224)  (2,322,392)
Less: comprehensive loss attributable to non-controlling interests  (10,886)  (4,935)
COMPREHENSIVE LOSS ATTRIBUTABLE TO BOQI INTERNATIONAL MEDICAL INC. $(3,429,338) $(2,317,457)
         
WEIGHTED AVERAGE NUMBER OF COMMON SHARES        
Basic and diluted  16,693,038   9,271,641 
         
INCOME (LOSS) PER SHARE        
Continuing operation-Basic and diluted $(0.20) $(0.15)
Discontinued operation-Basic and diluted $-  $(0.09)
Basic and diluted $(0.20) $(0.24)

 

 

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